Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! The Bar For Going Public There’s a lot of talk recently about “are IPO markets open” or “what scale do I need to get public.” If we look historically at the period from 2015-2020 (ignoring 2021 IPOs) the rough medians were ~$200m ARR (minimum was $100m ARR), 50% YoY growth, and >120% net retention. You can find more details in

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The bar for going public in cloud software companies is high, with minimum criteria of around $200 million ARR, 50% year-over-year growth, and >120% net retention. The article discusses the challenges faced by startups aspiring to go public and the attraction of public market investors to companies with high growth and positive financial metrics. It emphasizes the importance of understanding what type of profile is attractive to public market investors and the need for founders to be aware of stock burn and equity dilution.

Clouded Judgement 1.19.24 - The Bar for Going Public